E9-1B (Lower-of-Cost-or-Market) The inventory of Wei Company on December 31, 2014, consists of the following item.

E9-1B (Lower-of-Cost-or-Market) The inventory of Wei Company on December 31, 2014, consists of the following item.

Part No.         Quantity             Cost per Unit           Cost to Replace per Unit

10                    900                    $135                                $150

11                 1,500                        90                                    78

12                    750                      120                                  114

13                    300                      255                                  270

20                    600                      308                                  312

21a               2,400                        24                                    14

22                    450                      360                               352.50

aPart No. 21 is obsolete and has a realizable value of $0.20 each as scrap.

Instructions

(a) Determine the inventory as of December 31, 2014, by the lower-of-cost-or-market method, applying

this method directly to each item.

(b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total

of the inventory.